Do You Own the Most Powerful Company in the World?

What's being teased by Alpha Investor Letter?

By Travis Johnson, Stock Gumshoe, March 1, 2016

What’s the world’s most powerful company, second in size as an “economic entity” only to the United States and China?

Good question, right? That’s why this ad from Nicholas Vardy caught my eye — he’s selling us on the potential for 127% returns if we invest in this company (assuming we subscribe to his Alpha Investor Letter, naturally), so I thought we should dig through the ad and figure out what he’s talking about.

Here’s some more of the intro:

“… the single-most-powerful company on the planet – according to my friend’s research.

“But it’s not one of the names who you might think.

“Not Apple, Microsoft, or GE.

“Which, in and of itself, is quite remarkable.

“In fact, it’s a company you’d probably never guess in a million years – even though – according to my friend’s formula – it has a value of $4.32 trillion!”

You probably already know that no company has yet reached a market value of one trillion dollars (remember all the fuss when Apple got close to $800 billion a few months back?), so is this really some secret, massive company that we don’t know about that should really be worth eight times as much as AAPL?

Something’s odd with that math, of course, but let’s see what it is. More from the ad:

“It has a bigger impact on the global economy than Japan, Germany and the United Kingdom… Returned 1,981% to investors in the last 16 years… And looks even more profitable in the years ahead.

“In this report, discover this company’s name, along with 3 other ways to profit from it, offering gains as high as 127% in the next 12 months alone.”

Interesting… now we’re getting a little closer.

And Vardy does go into some detail regarding why this company is listed up at number three on the tally of global economic entities — he says he got this list from a lunch meeting with Patric Hale, who several years ago started compiling these kinds of lists (he used to run marketing for Euromoney, has written a couple books, and now manages The CEO Show). Here’s how Vardy describes the list:

“He created this list by combining information from four main sources:

  • The nations with the biggest GDP according to the IMF.
  • The top 500 global money managers ranked by assets according to the Towers Watson list.
  • The fortune global 500 list of top public companies; ranked by company revenue.
  • And the top 100 global banks according to their assets.

“From all of this data he created an algorithm that defined each of these entities’ economic power and influence on the global economy.

“And from there, he ranked them, calling his list, The Hale Index of the Top 500 Global Economic Entities.”

Ah, so it’s not that we’re talking about what a company should be worth, really, we’re just trying to rank different entities based on their economic impact or power.

That makes a bit more sense.

And it’s probably why none of those “fortune global 500” companies, ranked by company revenue, make the top ten — even the revenue of Wal-Mart, which posts higher sales than any other company in the world by a long shot, is still under $500 billion a year (the only companies who come close are Saudi Aramco, a couple Chinese oil companies, and a Chinese utility — though if you update the numbers to 2015 probably Samsung, the second place “real” company at $300 billion or so, even gets ahead of them).

So who is this mysterious company? More clues:

The King of America’s Fortune 500

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